Treasury Sees Strong Start To New Fiscal Year
October 17, 2024Updating the market ahead of its annual general meeting, Treasury Wine Estates executives said today that the company has seen a strong start to its fiscal year ending next June, with first-quarter net sales increasing by double-digits on an organic basis, boosted partially by shipment phasing.
“In Treasury Americas, the implementation of enhanced distribution arrangements following the acquisition of Daou was a key execution focus in the quarter, and with that transition now complete, we expect our Luxury portfolio performance to strengthen through the remainder of the year, starting with the key upcoming holiday selling period that covers both Thanksgiving and Christmas,” said Treasury CEO Tim Ford.
The solid quarter comes on the heels of a fiscal year in which Treasury Americas sales grew 22% to $660 million in the 12 months through this past June, including a 1.6-million-case contribution from its luxury brand stable, which includes Daou (655,000 cases), Stags’ Leap (165,000 cases), Frank Family (125,000 cases), Beringer Knights Valley (78,000 cases), Penfolds (75,000 cases), and Beaulieu (74,000 cases).
“We are seeing great momentum behind a number of key brands and an exciting long-term growth opportunity before us,” Ford added, commenting further on the Americas division. For its current fiscal year, Treasury is targeting EBITS in the range of A$780 million to A$810 million ($522m-$542m) for its global business, with sales continuing to be driven by the luxury portfolio.—Daniel Marsteller
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